Town Hall Notes

 

Win for Internet Sales Tax Fairness

07/03/2018

In a win for commercial real estate, the U.S. Supreme Court announced a ruling on June 21 that states should be able to require online sellers to collect and remit sales tax on purchases. The National Association of REALTORS® submitted a friend-of-the-court brief in favor of this position, because it helps create an even playing field between brick-and-mortar retailers and online businesses. In the case, South Dakota v. Wayfair, Inc., the Court ruled that the “physical presence” requirement which previously controlled is out of date in an e-commerce era. 

NAR’s position is that online retailers today have an advantage over brick-and-mortar stores. Brick-and-mortar stores must charge sales tax on purchases while the obligation to collect taxes in online purchases does not fall on the retailer. 

Note: Each state may now consider proposals to collect the tax. The Virginia General Assembly may consider this issue in upcoming legislative sessions.


Access the decision.

Read the news release and statement from NAR President Elizabeth Mendenhall.


Featured Resources